A popular crypto analyst and trader is saying that a Cardano (ADA) rally to fresh all-time highs is on the table as the sixth-largest crypto asset bounces off a crucial support area.
The crypto strategist pseudonymously known as Capo tells his 224,800 Twitter followers that he expects Cardano to ignite a potential 4x surge, provided that the Ethereum competitor stays above a long-term support level.
Second retest of the previous all-time high. As long as it stays above this level, $3 to $4 should be next (last all-time high), and if it consolidates above it, we will probably see $10.”
Cardano is trading at $1.42 at the time of writing, about 54% lower than its all-time high price of $3.10.
The cryptocurrency analyst and trader also takes a look at Bitcoin (BTC) by analyzing the demand exhibited on the crypto derivatives exchange FTX.
Looking at Bitcoin’s heatmap, which determines the depth of liquidity in the market, Capo says FTX users are eager to hop on the leading crypto asset.
“FTX adding even more demand now. This is bullish, and it doesn’t mean those orders have to be filled.”
In the short term, Capo says he expects Bitcoin to rally to $55,000. As for the broader crypto market, Capo says he expects the bull cycle to continue until the beginning of Q2 2022 at the very least.
“In my opinion, this bull cycle will last longer than most people expect, and 2022 should be bullish until April at least.”
Bitcoin is trading at $51,112 at the time of writing.
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Featured Image: Shutterstock/Giovanni Cancemi